Hi Everyone. Dollar has been going from strength to strength, but is the DXY running out of gas?
I've shared my intraday markup, We could finish the week off with some strength to efficiently price in the previous drop within price before continuing a bearish run.
I've listed some points below scoping out the bigger picture right now with the Dollar:
Support for further strength:
- Outlook for Fed monetary policy now more hawkish
- Powell projects pain, higher rates for longer set to keep the dollar bid
- No recession for America's labor market, more dollar gains eyed
- Fed Chair Powell prioritises fighting inflation, and ready to see negative growth
- Supportive monetary and growth considerations for USD to re-emerge
- Consumers shrug off higher prices, forcing the Fed to accelerate hikes
- Uncertainty about peak inflation in the US continues to support the dollar
- Beijing's zero COVID policies add to the greenback's safe-haven appeal
- Aggressive Fed tightening and safe-haven capital flows to result in a stronger USD
- Dollar to be pushed higher by weakening growth prospects in Europe and China
- Faster rate hikes are firmly on the agenda
USD Bearish:
- The dollar will eventually lose its reserve currency status
- The inflation wheel has turned, hitting the dollar
- Peak inflation is peeking from the clouds
- Economic data could dampen interest rate expectations
- Dollar will not be the reserve currency of the world any longer
- The Fed note’s decline is far worse than reported
- Rising debt servicing costs will pose a very serious problem
- Powell waits too long to react to inflation
- The nation, in nearly every aspect, is failing
- Countries accelerate shift away from US dollar
- Fed to swing the pendulum back down
- Easing of supply chains to push global inflation lower
Source: FX Street
What are your thoughts on where you see the Dollar heading towards? let me know in the comments below.
Aman | SMC Wolf FX
I've shared my intraday markup, We could finish the week off with some strength to efficiently price in the previous drop within price before continuing a bearish run.
I've listed some points below scoping out the bigger picture right now with the Dollar:
Support for further strength:
- Outlook for Fed monetary policy now more hawkish
- Powell projects pain, higher rates for longer set to keep the dollar bid
- No recession for America's labor market, more dollar gains eyed
- Fed Chair Powell prioritises fighting inflation, and ready to see negative growth
- Supportive monetary and growth considerations for USD to re-emerge
- Consumers shrug off higher prices, forcing the Fed to accelerate hikes
- Uncertainty about peak inflation in the US continues to support the dollar
- Beijing's zero COVID policies add to the greenback's safe-haven appeal
- Aggressive Fed tightening and safe-haven capital flows to result in a stronger USD
- Dollar to be pushed higher by weakening growth prospects in Europe and China
- Faster rate hikes are firmly on the agenda
USD Bearish:
- The dollar will eventually lose its reserve currency status
- The inflation wheel has turned, hitting the dollar
- Peak inflation is peeking from the clouds
- Economic data could dampen interest rate expectations
- Dollar will not be the reserve currency of the world any longer
- The Fed note’s decline is far worse than reported
- Rising debt servicing costs will pose a very serious problem
- Powell waits too long to react to inflation
- The nation, in nearly every aspect, is failing
- Countries accelerate shift away from US dollar
- Fed to swing the pendulum back down
- Easing of supply chains to push global inflation lower
Source: FX Street
What are your thoughts on where you see the Dollar heading towards? let me know in the comments below.
Aman | SMC Wolf FX
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.